Technological advances, a more mobile workforce and uncertain economic growth, combined with unpredictable business cycles, have led to higher demand for more flexible lease terms, better quality building services and spaces that offer better experiences.
For a large portion of the millennial workforce, workplaces that are comfortable and offer a wide range of amenities are increasingly preferred. Amongst the older generations, there is a growing need to achieve a lifestyle that provides work-life balance. As such, more companies are choosing to lease spaces in buildings that can provide these benefits, in order to attract and retain talent.
On the other hand, landlords wanting to gain a competitive advantage have started to offer flexible spaces and turn-key solutions to complement traditional office space. These are supported by amenities, technology, and personalised human-delivered services.
1. Provide space as a service on demand
In accordance with trends of increased demand for flexible space, landlords can capitalise on this by offering a combination of flexible and traditional space options in their buildings, giving tenants the opportunity to access different types of spaces within the building. This may be achieved through a flexible space operator as a tenant, or creating and operating their own flexible space platforms. Based on CBRE’s 2018 Asia Pacific Investor Intentions Survey, CBRE found that about 50% of landlords and investors believed that allocating no more than 20% of the building as flexible space can enhance the value of their portfolios.
2. Offer curated experiences
With a growing desire to provide employees with better workplace experiences, landlords are stepping up to provide a range of amenities in their portfolios. While it is common to provide amenities such as parking and on-site food and beverage options, CBRE’s 2018 Global Tenant Survey found that occupiers in Asia Pacific are increasingly demanding conference and meeting management services, as well as gyms and other wellness facilities. Some landlords are also offering services and amenities such as a concierge and ‘super experiences’.
3. Integrate wellness into building design
Landlords can differentiate their buildings by creating spaces that enhance the health and productivity of occupants, such as by incorporating natural elements and designing the building to ensure natural light and high-quality air.
4. Improve tenant engagement through technology and human-based interaction
Tenant engagement platforms can allow tenants to access their workplace and amenities, as well as allowing organisations to administer building management requirements from an app. CBRE, however, acknowledges that while technology provides sophistication and efficiency in integrating property services and amenities with building management, there is value in genuine human interaction for service delivery. Friendly and knowledgeable on-site staff can help create a supportive and welcoming atmosphere in the building, providing a point of contact for employees. Landlords can also use these tenant engagement platforms to gather anonymous data regarding tenant preferences, allowing them to refine their service offerings to improve tenant satisfaction.
These approaches can allow landlords to differentiate their assets by creating attractive user experiences. By building stronger relationships with occupiers and better meeting their needs, landlords can improve tenant retention, thereby providing them with a more sustainable income. Additionally, these enhanced space offerings have the potential to attract more tenants and higher rents.
Cover Image: 2 Dawn Fraser Avenue, located in the Sydney Olympic Park precinct, offers a range of space options, from part floor to full floor leases. The high-quality fitted building also has meeting rooms, informal meeting areas, breakout kitchen areas, and end-of-trip facilities. The building’s expansive windows allow natural light to penetrate the offices and the atrium. The atrium features a staircase which provides opportunities for interaction between its occupants.